Strategic Significance of the Acquisition of the Tirisano Diamond Mine

Having control of the Tirisano Diamond Mine operation and surrounding
Nooitgedacht property will allow Etruscan Diamonds to consolidate the
development of the significant diamond resources on the Nooitgedacht
property with those on the adjacent Hartbeestlaagte and Zwartrand
properties. The project on the combined properties will be known as the
"Blue Gum Project."

A National Instrument 43-101 compliant independent technical report dated
January 29, 2007 prepared by Dr. Tania Marshall of Explorations Unlimited
estimated the in situ inferred diamond resources on the Hartbeestlaagte
property to be 16.2 million cubic meters at an average grade of 3.18 carats
per hundred cubic meters (approximately 500,000 carats). Contract mining,
bulk sampling and drilling activities are currently underway to upgrade
this National Instrument 43-101 inferred resource into the indicated
category. A National Instrument 43-101 compliant independent technical
report dated August 13, 2003 by RSG Global estimated the in situ indicated
diamond resources on the Nooitgedacht property to be 12.3 million cubic
meters at an average grade of 2.8 carats per hundred cubic meters. As a
result of this acquisition, the resource calculations on the Nooitgedacht
property, where the Tirisano Mine is located, will now be updated and
included as part of the pre-feasibility study now underway.

Work will commence immediately to restart the Tirisano plant to provide
additional processing capacity for the bulk samples from the
Hartbeestlaagte and Nooitgedacht properties as part of the pre-feasibility
work. Upon successful completion of the pre-feasibility study, a public
offering is planned together with an application for a stock exchange
listing in order to advance the Blue Gum Project to full scale production.

Kevin MacNeill, the President of Etruscan Diamonds Limited stated:

"We are delighted to have reached an agreement with Mvelaphanda Exploration
to acquire their interest in the Tirisano Diamond Mine and surrounding
Nooitgedacht property. Development of the three properties together as the
"Blue Gum Project" provides the economies of scale to deliver a very robust
project. The additional processing capacity provided by the Tirisano plant
over and above the newly purchased pan plant will allow us to double the
amount of bulk sample gravels being processed as part of the
pre-feasibility study to 100,000 cubic meters per month. This will be the
first phase of the project which we estimate will be completed by February
2008. The second phase, to be funded with the proceeds from the planned
initial public offering by Etruscan Diamonds Limited in the spring of 2008,
will incorporate the existing DMS plant at Tirisano into a new plant that
will increase processing throughput to 260,000 cubic meters per month."

Background on the Tirisano Diamond Mine

Over the last five years, Etruscan Diamonds has been acquiring strategic
properties in the Ventersdorp and Lichtenburg alluvial diamond districts,
located approximately 150 kilometers and 200 kilometers respectively west
of Johannesburg, South Africa. The Tirisano Diamond Mine represented the
first phase of development for the Ventersdorp group of properties. A
National Instrument 43-101 compliant independent resource estimate for the
Tirisano Diamond Mine was completed in August 2003 by RSG Global (Pty)
Limited of Johannesburg, South Africa. RSG calculated the in situ indicated
diamond resources to be 12.3 million cubic meters at an average grade of
2.8 carats per hundred cubic meters (350,000 carats). Total diamond
production from the Tirisano Diamond Mine up to the end of November 2005
was in excess of 23,000 carats.

The Tirisano Diamond Mine was initially operated by Etruscan Diamonds. In
May 2004, Etruscan Diamonds entered into an agreement with Mvelaphanda
Exploration to facilitate the expansion of the Tirisano Diamond Mine and
Mvelaphanda Exploration became the operator of the Mine. In June 2005,
Mvelaphanda Exploration earned a 50% interest in the Tirisano Diamond Mine
by commissioning a plant with a design capacity of 300 cubic metric tons
per hour throughput and a 50/50 joint venture between Etruscan Diamonds and
Mvelaphanda Exploration was formed with Mvelaphanda Exploration continuing
as operator. The plant consists of a screening and scrubbing circuit with a
dense media separation plant. This plant, in its present configuration, can
efficiently treat 50,000 cubic meters per month. During its period of
operatorship, Mvelaphanda Exploration incurred capital and net operating
expenditures of in excess of CDN$13million.

Until the fall of 2005, the recovered grade from operations was
consistently below the average forecast grade (2.8 carats per hundred cubic
meters) because a large volume of uneconomic gravel was processed. In the
fall of 2005 mining activities progressed into the deeper gravel packages.
During the month of November 2005 the grade of diamonds averaged 2.95
carats per hundred cubic meters and the last 3,200 cubic meters of gravel
processed averaged 5.4 carats per hundred cubic meters. However, as a
result of the period over period operating losses and the low rand/dollar
exchange rate the operation was placed on care and maintenance at the end
of November 2005. During this period geological work was completed to
better understand the geological model. This work resulted in the
identification of three distinct gravel packages; the upper gravel package
("UGP"), the pebbly-clay package ("PCP") and the lower gravel package
("LGP").

Past production results indicate that the PCP gravels are sub-economic and
should be treated as waste. Production records during the final month of
operation in November of 2005 showed a clear and significant increase in
grade as the mining progressed into the lower gravel package (the final
feed graded in excess of five carats per hundred cubic meters). The new
geological model generated through bulk sampling and drilling during this
period demonstrated that a large volume of the PCP gravels were
sub-economic and should have been classified as waste. In the last 10
months of operation, in excess of 80% of the throughput consisted of the
sub-economic PCP gravels. With the benefit of the new geological model and
recognition of ore versus waste in the gravel packages, grade control can
now be managed in the pits.

Past mining operations at the Tirisano Diamond Mine provided consistent and
reliable data with respect to the value of the diamonds. Diamond sales
averaged US$489 per carat over the period 2003 to 2005 and during the last
year of operation averaged US$566 per carat. The high value of the
diamonds is attributable to the average stone size and the high quality of
the stones.

It is anticipated that mining operations at Tirisano will recommence in
early 2008 after the completion of the bulk sampling of the Hartbeestlaagte
gravels. The plant facility has remained in good condition and minimal
capital expenditures are expected in order to recommence operations. The
pits have continued to be dewatered for purposes of facilitating a
subsequent restart of operations. As a result of the prior mining, it is
expected that limited additional stripping will be required and better
recovered grades are forecast as a result of the exposure of the
higher-grade diamondiferous LGP gravel package at the lower levels.

Hartbeestlaagte Property

The Hartbeestlaagte property is adjacent to the Nooitgedacht property where
the Tirisano Mine is located. An independent National Instrument 43-101
resource estimate for the Hartbeestlaagte property completed by Dr.
Marshall in January, 2007 estimated the inferred diamond resources to be
16.2 million cubic meters of gravels at an average grade of 3.18 carats per
hundred cubic meters (approximately 500,000 carats) at an average sales
value of USD$400 per carat of actual sales of recovered diamonds. The
National Instrument 43-101 report confirms that, in addition to the
inferred resource, a large area of exploration potential exists including
an indefinable volume of material that is located below the present
drilling level in the large sink holes existing on the property. Drilling
to date has been limited to a vertical depth of 117 meters in these areas.
Geophysical modeling is unable to identify the base of the bedrock in these
structures with any accuracy nor has the drill program penetrated these
thick gravels. As a result, it has not been possible to estimate what
volume of gravel might exist, though it is expected to be substantial.

In accordance with the recommendations in the National Instrument 43-101
report, Etruscan Diamonds is undertaking additional drilling and sampling
to upgrade the currently identified inferred resources to the indicated
category. Further drilling and bulk sampling is also being undertaken to
identify additional inferred resources and further exploration potential.
Concurrently with the indicated resource study, a preliminary feasibility
study is being completed to convert the indicated resources into probable
reserves.

Etruscan Diamonds has commissioned the construction and delivery of a new
50,000 cubic meter per month bulk sampling plant to assist with the
pre-feasibility study work. The plant consists of four 16 foot pans, two
2.5 x 6 meter scrubbers and two X-ray units. The pans will do the primary
concentration and the pan concentrate will be conveyed to a DMS feed surge
bin. The pan concentrate will then be pumped from the bin to the existing
Bateman DMS located at the Tirisano Diamond Mine for secondary
concentration. The DMS concentrate will be sent to the final recovery units
for final sorting in a glove box. This configuration will upgrade the
capacity of the plant to handle more volume as compared to a conventional
washing and screening/DMS set up.

Acquisition Agreement Terms

Mvelaphanda Exploration has agreed to transfer its 50% interest in the
Tirisano Diamond Mine Joint Venture to Etruscan Diamonds in consideration
for the payment of R25 million (approximately CDN$ 3.7 million) and the
delivery to Mvelaphanda Exploration of R25 million worth of shares of
Etruscan Resources Inc., the exact number to be determined based on the 20
day volume weighted average trading price of the shares of Etruscan on the
Toronto Stock Exchange immediately prior to closing. The acquisition is
expected to close in early October.

BEE Partner

Etruscan Diamonds has also reached an agreement in principle with Mogopa
Minerals (Pty) Ltd. ("Mogopa") to transfer a 26% interest in the Tirisano
Diamond Mine to Mogopa in consideration for the payment of R26 million.
Mogopa will replace Mvelaphanda Exploration as the entity providing the
black economic empowerment for the project as required by South African
mineral legislation. Mogopa is also Etruscan Diamonds' Black Economic
Empowerment partner on the Hartbeestlaagte and Zwartrand properties. Mogopa
has accepted an indicative term sheet from the Industrial Development
Corporation of South Africa Limited ("IDC") to finance Mogopa's acquisition
of the 26% interest in the Tirisano Mine Joint Venture. Etruscan Diamonds
has also accepted an indicative term sheet from the IDC to provide an
additional R25 million to fund additional working capital requirements to
reactivate the Tirisano Mine. These financings are subject to approval by
the IDC's credit committee. It is anticipated that the Mvelaphanda
Exploration acquisition and Mogopa sale will be cash neutral to Etruscan
Diamonds.

Diamond Asset Restructuring

Earlier this year Etruscan Resources and Mountain Lake completed the
formation of a new company named Etruscan Diamonds Limited ("EDL") to hold
their respective interests in their diamond assets in South Africa. Each of
Etruscan and Mountain Lake, together with other third parties, transferred
all of their interests (both debt and equity) in Etruscan Diamonds for
shares of EDL.

In March of this year EDL successfully completed a CDN$11 million private
placement financing. The proceeds of the private placement are being used
primarily to continue the exploration program and undertake the
pre-feasibility study on the Hartbeestlaagte property.

Ventersdorp Diamond District

The Ventersdorp Diamond District covers approximately 5,000 km2 and mining
of alluvial diamonds has been carried out in the district since 1904. Total
reported production from the Ventersdorp District during the period 1926 to
1984 is estimated at 667,000 carats. Etruscan Diamonds holds the dominant
land position in the Ventersdorp District with two mining permits and 17
prospecting permits with applications for 5 additional prospecting permits
pending. Etruscan Diamond's efforts to prioritize its land holdings in the
Ventersdorp District have been assisted by the results of an airborne
gravity survey conducted over an area of approximately 4,000 km2. The
survey was conducted by Bell Geospace Ltd. of Aberdeen, Scotland and
identified a number of prospective sinkhole features. Large sinkhole
features in the Ventersdorp District are known to be associated with
diamondiferous gravels.

Robert Harris P. Eng and Vice President of Operations of Etruscan Resources
Inc. is the Qualified Person overseeing the diamond projects in South
Africa.

About the Mogopa Community

The Mogopa community, through their trust, created the company Mogopa
Minerals (Pty) Ltd. to oversee all mining related interests for the
community. The community has about 350 families and is located in the
vicinity of the mining area indicated in figure 1. Etruscan Diamonds and
the Mogopa community have shared a long positive working relationship. This
relationship made it possible for the creation of the current sustainable
farming projects on community land.

About Mountain Lake Resources Inc.

Mountain Lake Resources Inc. (TSX-V: MOA) is a diversified junior mining
and exploration company whose corporate strategy is to build shareholder
value through the exploration and development of economically viable
mineral properties. Current projects include: a 100% interest in the
Bobby's Pond Base Metal Project; the Valentine Lake Gold Project, in which
Richmont Mines Inc. is earning a 70% interest; and a 17.2% stake in
Etruscan Diamonds Limited, a producing diamond miner in South Africa. For
more information visit: www.mountain-lake.com

ON BEHALF OF THE BOARD OF DIRECTORS
s/"Gary Woods"
President & CEO

This press release may contain certain forward-looking statements which
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Forward-looking
statements may include statements regarding exploration results and
budgets, mineral reserve and resource estimates, work programs, capital
expenditures, mine operating costs, production targets and timetables,
future commercial production, strategic plans, market price of precious
metals or other statements that are not statements of fact. Although the
Company believes the expectations reflected in such forward-looking
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will prove to have been correct. Various factors that may affect future
results include, but are not limited to: fluctuations in market prices of
precious metals; foreign currency exchange fluctuations; risks relating to
mining exploration and development including reserve estimation and costs
and timing of commercial production; requirements for additional financing;
political and regulatory risks, and other risks and uncertainties described
in the Company's annual information form filed with the Canadian Securities
regulators on SEDAR (www.sedar.com). Accordingly, readers should not place
undue reliance on forward-looking statements.

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